Crossing China’s big red currency line

The big red currency has crossed a big red line. It might not be so scary on the other side. A year of steady appreciation in the yuan has gone poof in a few weeks, with the Chinese unit now crossing the 6.20-per-dollar threshold.
Market players have warned that breaching that level would trigger collateral calls on investment products that could unleash even more instability in the currency. Those products were sold when the yuan was stronger than 6.20—with herd-like consensus that it could only go in one direction………………………………………..Full Article: Source